New York, NY – Meta Platforms Inc (META) faced a significant sell-off on Thursday, June 20th, with its stock dropping sharply after opening higher. The bearish session wiped out early gains and closed near the day’s low, signaling strong selling pressure and setting a cautious tone for the week ahead. For traders, understanding the key levels from this session is crucial for navigating Monday’s open.
Thursday’s Trading Breakdown
Meta stock closed the day at
13.42 (1.93%). The intraday action reveals a clear victory for the bears:
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A Bull Trap at the Open: The stock opened at $700.75, well above the previous day’s close of
701.82** before sellers took complete control.
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A Sustained Downtrend: From the opening bell, the stock trended consistently downward, breaking through several psychological levels.
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Finding a Bottom: The selling pressure eventually found a floor at the day’s low of $678.67.
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After-Hours Glimmer: In after-hours trading, the stock saw a minor recovery, rising to $683.79, a gain of $1.44 (0.21%). While a positive sign, it does little to erase the damage from the main session.
This type of price action—gapping up only to sell off for the entire day—is a particularly bearish signal, indicating that initial optimism was quickly overwhelmed by a wave of selling.
Key Data for a Trader’s Watchlist
To prepare for Monday, traders should focus on these critical data points from Thursday’s session:
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Crucial Support: The day’s low of $678.67 is now the most important support level to watch. A break below this level on Monday would confirm the bearish trend and could trigger further selling.
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Immediate Resistance: The zone between the previous close (
700.75) now acts as a major resistance area. Bulls will need to push the stock back above this level to signal a reversal.
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52-Week Context: The stock is trading well below its 52-week high of $740.89, suggesting the recent momentum has been negative.
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P/E Ratio: At 26.65, Meta’s valuation is more moderate compared to some of its mega-cap tech peers. This could attract value-focused investors if the price continues to drop.
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Market Cap: With a market capitalization of approximately $1.72 trillion, Meta remains a market heavyweight, but it is not immune to broad market or sector-specific headwinds.
Outlook: Will Meta Stock Go Up or Down on Monday?
The evidence from Thursday’s trading session points heavily towards a bearish outlook for Monday.
The Bearish Case (The More Likely Scenario):
The powerful downward momentum and the close near the day’s low suggest that sellers are still in control. The path of least resistance appears to be lower. Traders should anticipate a test of the $678.67 support level early in the session. If that support fails, the next logical target for bears could be the next psychological level around $670.
The Bullish Case (A Contrarian View):
Bulls will argue that the nearly 2% drop was an overreaction and that the stock is now in “oversold” territory on a short-term basis. The modest after-hours bounce shows some buyers are willing to step in at these lower prices. A bullish scenario would involve the stock holding above the $678.67 low and attempting to reclaim the
690 range. However, this would require a significant shift in market sentiment.
The Verdict for Traders
Investing today (i.e., on Monday) is a high-risk proposition. The technical picture is decidedly bearish.
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For Aggressive Traders: A break below the $678.67 low could present a short-selling opportunity.
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For Cautious Bulls: It would be prudent to wait for the stock to show signs of stabilization and reclaim a key resistance level, such as $695, before considering a long position. Buying into the current downward momentum is akin to catching a falling knife.
Monday’s first hour will be telling. If the stock fails to bounce and continues to pressure the lows, expect the downtrend to continue. If it can stabilize and build a base above $680, a short-term bounce could be possible, but the overhead resistance remains formidable.
